Joan holds 100 shares in Box Ltd. The directors of Box Ltd have announced that she will be granted one share for every five shares that she holds. The shares will be issued fully paid-up.
What is the name given to such an allotment of shares?
Joan holds 100 shares in Box Ltd. The directors of Box Ltd have announced that she will be granted one share for every five shares that she holds. The shares will be issued fully paid-up.
What is the name given to such an allotment of shares?
The allotment of additional, fully paid-up shares, in proportion to the holding of each shareholder is a bonus issue. A rights issue requires the shareholder to pay for the extra shares issued.
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